Income statements for Gaidar Company for 2014 and 2015 follow.

Required
Round all percentages to one decimal point.
a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2014 and 2015.
b. Perform a vertical analysis, showing each income statement component as a percent of sales for eachyear.

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2015 2014 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense $300,000 192,000 30,000 15,000 6,000 $243,000 57,000 14,000 $43,000 $250,000 150,000 24,000 20,000 8,000 $202,000 48,000 12,000 $36,000